American Family vs. State Farm Car Insurance for 2022
Our American Family vs. State Farm car insurance guide will help you decide between two great companies while taking into consideration your unique factors such as age, driving record, and credit score. Rates are similar in comparison, but State Farm is better for drivers with a bad driving record. American Family has a stronger financial outlook.
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UPDATED: Jun 30, 2022
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- American Family and State Farm are competitive when it comes to customer satisfaction through the claims process
- State Farm has a lower customer complaint ratio than American Family
- American Family vs. State Farm car insurance rates are similar; however, State Farm has lower car insurance rates overall and for male teen drivers
- State Farm has the highest financial stability rating from A.M. Best and offers higher discounts than American Family
- American Family has better rates for drivers with a low credit score, but if you have a bad driving record, State Farm is a good option
There are many factors that affect the cost of car insurance. In our American Family vs. State Farm car insurance guide, we compare rates by age, driving record, and credit score.
We also compare available discounts and ratings from agencies with a credible and trustworthy view of American Family vs. State Farm car insurance companies.
Looking for affordable American Family vs. State Farm car insurance quotes? Enter your ZIP code to start comparing affordable car insurance companies in your area.
Is American Family car insurance or State Farm car insurance cheaper based on age?
The more we drive and the longer we drive, the safer and more aware we become when behind the wheel. For this reason, car insurance companies use age as one of the most influential factors in quoting your car insurance rates.
In most states, it’s legal to base car insurance rates on marital status and gender as well; however, some have banned this practice.
Let’s compare American Family rates and State Farm rates based on age, gender, and marital status.
|Demographic||American Family Average Annual Rates||State Farm Average Annual Rates|
|Single 17-year-old female||$5,997||$5,954|
|Single 17-year-old male||$8,131||$7,324|
|Single 25-year-old female||$2,289||$2,336|
|Single 25-year-old male||$2,695||$2,555|
|Married 35-year-old female||$2,203||$2,082|
|Married 35-year-old male||$2,224||$2,082|
|Married 60-year-old female||$1,993||$1,874|
|Married 60-year-old male||$2,014||$1,874|
American Family insurance and State Farm insurance have fairly competitive rates.
However, State Farm rates are up to 10% cheaper than American Family rates. State Farm gives young male drivers — the most expensive demographic to insure — a better deal than American Family.
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Is American Family car insurance or State Farm car insurance cheaper based on driving record?
Speeding tickets, accidents, or DUIs on your driving record will raise your car insurance rates no matter what company you pick. These infractions indicate that you are a greater risk to insure.
|Infraction||American Family Average Annual Rates||State Farm Average Annual Rates|
|With one speeding violation||$3,026||$3,186|
|With one accident||$3,723||$3,396|
|With one DUI||$4,330||$3,637|
State Farm has slightly higher rates for drivers with a speeding ticket but lower rates than American Family if you have an accident or DUI on your record.
Compared to a driver with a clean record, American Family rates for having a speeding ticket, accident, or DUI on your record will increase by 12% to 61%.
State Farm, however, is more forgiving when its drivers have infractions added to their driving record. Drivers that get a speeding ticket, cause an accident or get a DUI will see their rates increase by only 13% to 29% in comparison to a driver with a clean record.
In general, if you have any violations on your driving record, State Farm is the best option for you.
Is American Family car insurance or State Farm car insurance cheaper based on credit score?
If you experience some type of financial trauma such as incurring medical debt or going through a divorce, your good credit score can drop in a matter of months.
In most states, it’s legal for car insurance companies to factor in your credit score when determining your rates; however, some are banning this practice along with factoring in gender and marital status.
Car insurance companies justify using your credit score to determine your rates based on the assumption that those with higher credit scores are more responsible and safer drivers less likely to file a claim.
Let’s take a look at how American Family and State Farm set rates for drivers with various credit scores.
|Credit History||American Family Average Annual Rates||State Farm Average Annual Rates|
|Good Credit (670-739)||$2,692||$2,174|
|Fair Credit Score (580-669)||$3,170||$2,853|
|Poor Credit Score (300-579)||$4,468||$4,951|
Car insurance rates with State Farm are generally lower than American Family unless you have poor credit — then you will pay more.
However, American Family is a little more lenient than State Farm when it comes to credit scores that drop over time. Drivers with State Farm that have poor credit will pay over twice as much as a driver with good credit.
If you have a bad credit history, State Farm is a better choice initially; but, if you anticipate your credit score dropping, you may want to consider changing companies.
Before you choose American Family or State Farm, read about car insurance laws in your state and examine rates from a variety of companies.
It may be that basing car insurance rates on gender, marital status, and/or credit score has been outlawed in your state.
Does American Family or State Farm have better car insurance discounts?
If you have a bad driving record or low credit score, getting good discounts will offset your high rates. But which company will give you more opportunities to save, American Family or State Farm?
Unfortunately, our source includes only three American Family car insurance discounts: defensive driver, airbags, and using the company’s driving device or app.
|Discounts||American Family||State Farm|
|Adaptive Cruise Control||n/a||n/a|
|Daytime Running Lights||n/a||n/a|
|Electronic Stability Control||n/a||n/a|
|Forward Collision Warning||n/a||n/a|
|Lane Departure Warning||n/a||n/a|
|New Customer/New Plan||n/a||n/a|
|On Time Payments||n/a||n/a|
|Seat Belt Use||n/a||n/a|
|Students & Alumni||n/a||n/a|
With State Farm, you can save 30% to 50% by having a short commute, driving a newer vehicle, having airbags, or using the driving app or device.
The discounts provided by car insurance companies also target particular categories of drivers, so be sure to ask if there are any extra discounts you might be eligible for by calling American Family or State Farm customer service at the American Family or State Farm phone number.
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Does American Family or State Farm have better car insurance mobile apps?
Usage-based car insurance has become a hot trend in the car insurance industry in the last decade.
All of the larger car insurance companies have a driving app that uses your mobile phone or a device installed into your vehicle to evaluate your driving.
A more general app is also offered by major car insurance providers to allow you to access your policy, make adjustments, and pay your bill.
But, before you make adjustments to your policy on the app, make sure you understand the different types of car insurance coverage.
If you are confused, you should learn more about the elements and terms to help you understand your policy.
Usually, in both the general app and the driving app, your AmFam login or State Farm login will likely be the same.
But if you really prefer talking to someone about your car insurance needs, call the company directly. Who knows? Maybe Jake from State Farm will answer.
How do American Family and State Farm car insurance compare in financial strength and customer satisfaction?
Purchasing car insurance is an important financial responsibility, so you want to make sure you’re selecting the right company that will be there for you when you need it most.
A company’s financial strength, customer satisfaction with the claims process, and the number of customer complaints should be reviewed prior to making your decision.
The following three agencies provide insight into these factors:
A.M. Best scores companies based on their ability to meet their ongoing insurance obligations, such as balancing premiums collected and claims paid. The highest score A.M. Best awards is Superior A++.
Consumer Reports collects annual data from its subscribers regarding customer satisfaction of the claims process, step by step. In its 2017 survey, 27 insurance companies were rated, and scores ranged from 86 to 96.
The National Association of Insurance Commissioners (NAIC) calculates a complaint ratio based on the total number of customers vs. the total number of complaints. In 2017, the national average complaint ratio was one. The lower the ratio, the better.
|Rating Agency||American Family||State Farm|
|AM Best Rating||A||A++|
|NAIC Company Complaint Ratio||0.79||0.44|
|NAIC Total Complaints||73||1482|
Both companies have a strong financial future, but State Farm carries the highest rating from A.M. Best.
Additionally, both the State Farm and American Family insurance claims processes are competitively rated when it comes to customer satisfaction.
However, State Farm has a slightly lower customer complaint ratio.
Before you buy American Family vs. State Farm car insurance, use our FREE comparison tool to see the best car insurance quotes from companies in your area.